Taxation of Chargeable Gains Act 1992 section 3D

Individuals who were non-UK domiciled

Section 3D deals with the tax treatment of gains from non-UK resident close companies that are attributed to individuals who were not domiciled in the United Kingdom, specifically for the tax year 2024–25 and earlier years, and how those gains interact with the remittance basis of taxation.

• When a gain made by a non-UK resident close company is attributed to a non-UK domiciled individual for 2024–25 or earlier, the attributed amount is treated as arising from a foreign asset disposal — but only if the company actually disposed of a foreign asset.
• For remittance basis purposes, any sale proceeds received by the company are treated as deriving from the individual's attributed gain; if the proceeds are below market value, the asset itself is also treated as deriving from that gain.
• The attributed gain cannot be reduced or wiped out by losses if the gain relates to a foreign asset disposal, the individual is on the remittance basis for that year, and any part of the gain is later remitted to the United Kingdom.
• The definition of a "foreign asset" for these purposes follows the same meaning as set out in Schedule 1 to the Taxation of Chargeable Gains Act 1992.